The World Bank and a syndicate of German Banks headed by the Deutsche Bank A.G. as manager and the Dresdner Bank A.G. as co-manager signed today (December 22) an agreement covering a new issue of World Bank Deutsche Mark Bonds. The principal amount of the issue is DM 150 million (US$ 41 million equivalent). The interest rate on the issue is 8% payable annually on January 1. The bonds will be publicly offered at 98 3/4%. The issue will be redeemed at par after a grace period of five years in ten equal annual installments on January 1, of each of the years 1977 to 1986.
The German withholding tax of 25% on interest payments made to nonresidents will not apply to these Bonds.
The Bonds will be listed on all German Stock Exchanges. The proceeds of this issue will be used in the general operations of the World Bank.